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Sunday, 3 May 2015
Gold and Silver Workshop Training....
Only Connect - Business and Social Networking at its Best...
Only Connect organise Business Showcase South West and there's just over 1 week now until our next offering
- the region's biggest FREE 2 day business event. If you haven't registered to attend, we strongly encourage you to come and benefit from:
- the region's biggest FREE 2 day business event. If you haven't registered to attend, we strongly encourage you to come and benefit from:
- FREE Keynote Speeches from business leaders and personalities
- FREE seminars all-day, both days in the Seminar Room
- FREE speed networking sessions twice a day, both days
- Dozens of Exhibitors, Partners and Sponsors showing-off their products and services: from small SMEs to global leaders
- 4N Business Breakfast meetings on both days
- One of the biggest FREE networking opportunities in the UK
Traffic Monsoon Review - 3rd May 2015
I learned something in the past few days... You see, I joined Traffic Monsoon at launch in October 2014 but sadly did nothing as I was too involved at the the time in other business opportunities. Eventually on 29th March, 2015 and after meeting the owner, Charles Scoville in London, I started to TAKE ACTION and realized I have found an Opportunity that can provide a mass of Traffic to any other business I promote as well giving me the opportunity to Make a Lot of Money Online out of the Traffic Monsoon Business Module
But here's the thing... I'm promoting it now and steadily making money in referral commissions as customers I refer start using the product.
But I'm also making more and more money in the daily profit share. That's when you get paid a portion of the company's total sales income just for logging in and clicking on 10 ads every day. You can also withdraw this daily profit share income instantly to PayPal withing seconds.
This process works really well but what I didn't realize (or wasn't paying attention to) until just a day or two ago is that all my daily profit share earnings are immediately available to me to purchase new credit packs.
What that means is that the money I'm earning from the daily profit share, allows me to buy more credit packs each day which allows me to earn profit share even faster. You see, you earn profit share every on ALL the Ad Packs you have and there is NO Maximum on how many Ad Packs you can own. My goal is to hit at least 1500 Ad Packs over the next 6 months.
But here's what's really compelling to me about this... I originally bought 20 ad packs on the 29th March, 2015. I've been steadily re-investing my profits from Traffic Monsoon into more ad packs and am now up to 120 ad packs as of the 3rd May, 2015.
Here's what I just realized, and now am super excited about... I'm earning enough profit share on those 110 ad packs every day to buy another 3-4 ad packs the next day. And then because I own 3-4
ad packs by re-investing my profit share earnings, I actually start earning profit
share faster with each day that goes by.
For example, within a week, I'll purchase at least another 25 ad packs just from my profit share earnings alone which will put me up to 145 ad packs. And since I'll have 145+
ad packs, my daily profit share earnings will be growing even faster at that time (because I'll be earning on more credit packs every day), and soon I'll be able to buy 5-6 ad packs each day - just from daily profit share earnings.
I'm realizing this is all about momentum. Within a couple of months, I'll most likely be buying 10-20 new ad packs each day just from my profit share earnings alone and moving faster and faster towards my 1500 ad packs goal.
And this all started with 20 ad packs, and clicking 10 ads a day.
Moreover, I'm using all these ad packs to advertise my primary offer and I'm getting new signups for my offer (the Plug-In Profit Site) every week through my Traffic Monsoon advertising.
Truly, this is the most interesting and effective online advertising service that I've ever used. It's advertising that pays you back, and can quite literally become a full-time income for anyone who has the faith to buy a few credit packs, and the discipline to login and click 10 ads per day.
I'll keep you posted on my progress, and continue sharing my tips with you along the way.
I'm just floored right now about how the daily profit share earnings are immediately available to re-invest in new credit packs, and how this can start compounding your earnings very quickly.
Please watch my Traffic Monsoon Video below and if you want to work with me on this then please set up a Free account on the link below...
Also call me anytime on + 44 7966 871854 is you want to take your Online Business and Lifestyle to the next level...
Wednesday, 29 April 2015
The Business Show | Excel London | 13th & 14th May, 2015
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| Alright ADRIAN The Business Show | Excel London | 13th & 14th May A quick note to say that as a networker you’ll be buzzing to know that 4N are hosting one of the biggest networking sessions to EVER take place in a couple of weeks’ time! We’ve taken a HUGE space for 4N at the one and only Business Show at ExCeL, London on 13th 14th May and it’s going to be AMAZING! The great news is that it’s completely free to attend if you register below.
We’re going to have 4N members from all over the country converging at the show and I really need you there too. You’ll have the chance to meet 4N connections from all over the country face to face, plus the other 25,000 businesses that attend this incredible buzzing business event. I promise you, your business can’t fail to get positive outcomes from this. I’m headline speaking on both days alongside the likes of Piers Linney (from Dragons Den), Facebook, Hootsuite, Microsoft, Saatchi & Saatchi and some of the UK’s most inspirational business owners who have smashed it to the top in 2014/15. Plus there’s 250 more seminars from business experts, 170 masterclasses, funding features and much more – so what are you waiting for? Tickets will run out shortly so book now and get yourself over to ExCeL for a guaranteed business event of the year.
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| Brad |
| Brad Burton Managing Director 4Networking |  | @BradBurton |
| PS If you’d like to know more about 4N, then book into one of our meetings near you – find your nearest 4N meeting |
4Networking | www.4networking.biz | 0845 123 4444 | @4NHQ
Harding House, St George’s Square, The Mount, Taunton TA1 3RX |
Property WorkShop 1 Day Training - How to STOP Property Repossessions in the UK - Saturday 2nd May, 2015
When marketing for property deals and speaking with private house sellers, you will encounter people who are being pushed by distressing circumstances.
Some of you will have experience or understanding of the Sale and Rent Back market, which has been regulated out of existence by the FCA and is no longer an option for sellers.
Did you know that by working with local landlords, you can offer long term Relocation Packages instead?
Did you know that there is a huge amount of case law that can help vendors to keep control of their property or even sell at less that the total debts?
Learn all of the techniques you can use to genuinely help vendors who are facing repossession, whilst doing sustainable property deals along the way.
SATURDAY 2ND MAY
EXPERIENCE THIS UNIQUE TRAINING FOR JUST £150
Call me Adrian Hibbert on 07966 871854 to Book Your Place for Saturday, 2nd May 2015 or email me @ info@buysellproperty.co.uk
Tuesday, 28 April 2015
Keep you up to speed with the latest UK Property Landlord news and insights...
Many people dream of becoming a full time landlord, but what does it take to give up the day job? Find out how:
How to convert to a full time landlord?
But is now a good time to be a landlord? Labour's plans could potentially destroy the private rented sector!
Labour are "electoral kryptonite" for landlords > Please take our "voting intentions" anonymous poll!
Need a bit of inspiration this Monday morning? Read these heart-warming stories and share yours!
Where does your passion for property come from?
Featured event:
The BTL scene in Southampton and free landlord education event with Kate Faulkner
Latest and trending topics:
HMO and multi-let landlords to fit heating meters to individual rooms - new legislation
Mortgage Express responsibility in 2006 fraud case
Student lets in Leeds
Landlords still lacking awareness of tenancy deposit protection, say TDS
"Remote properties have been problematic" says landlord Angela Bryant
Shawbrook Bank M.D. Stephen Johnson gives an overview of the property market as we approach the General Election
Exclusive new BTL mortgages from Property Tribes Mortgages
Time and cash rich - please advise
Mortgages for LHA tenants
"There's bad practice and then there's outright fraud" warns Property Investor News Editor, Richard Bowser
Landlord interview: "More women should come forward in property" says HMO Landlord Wendy Whittaker-Large
HMO = Houses Misunderstood Often?
Is being a landlord ethical?
Top 10 best towns and cities in the U.K. where you can purchase property under £50K
NEW AND IMPROVED FREE tax spreadsheet for landlords from Rental Income Tax Advisors.
Keep control of Council Tax in your rental properties
BTL Financing Guide - our latest video guide explains how to get your BTL financing ducks in a row and how a mortgage broker is a vital part of your team!
Directory of Councils going ahead with landlord licencing - Hastings has announced their intention for this.
Property Snakes and Ladders - 15 top tips to BTL success.
Property Tribes "Book of the Month" for April - "Property Investor Toolkit" by Richard Brown
Concerns about Ben Rogers
Spotlight on cash flow and yield - top resources to help to measure and manage.
FREE property cash flow spreadsheet:
Our tax partner, Rental Income Tax Advisors, have a free spreadsheet for landlords to help them manage their cash flow.
To receive your free copy, just email >>>> clients@rita4rent.co.uk with "Property Tribes spreadsheet" in the subject line!
Newbie resources:
Top 10 Property Tribes resources for newbie landlords and property investors
The same questions often re-appear on Property Tribes, so we've started creating content that deals with landlord FAQ's.These are the issues and compliance ALL landlords must be familiar with.
Landlord Basics
BTL Financing Guide - our latest video guide explains how to get your BTL financing ducks in a row and how a mortgage broker is a vital part of your team!
Your community news:
We wanted to make you aware of Property Tribes RepoList, the U.K.'s largest real-time database of repossessed and refurbishment properties.
It is widely believed that refurbishment projects and repossessed properties offer purchasers and investors the highest statistical likelihood of finding a bargain or below market value purchase.
In the time it takes you to read this sentence, Property Tribes RepoList can analyse over 750,000 properties currently for sale nationally.
It identifies a number of repossessions and refurbishment projects and catalogues them into a real-time and searchable database, focusing on the postcode of your choice.
Subscribe to RepoList NOW!
Just £19.99 per month!
Special offer: Create your account and use the discount promotional code "propertyt" to get 50% off your subscription for life!
Spotlight on a Tribe:
How to convert to a full time landlord?
But is now a good time to be a landlord? Labour's plans could potentially destroy the private rented sector!
Labour are "electoral kryptonite" for landlords > Please take our "voting intentions" anonymous poll!
Need a bit of inspiration this Monday morning? Read these heart-warming stories and share yours!
Where does your passion for property come from?
Featured event:
The BTL scene in Southampton and free landlord education event with Kate Faulkner
Latest and trending topics:
HMO and multi-let landlords to fit heating meters to individual rooms - new legislation
Mortgage Express responsibility in 2006 fraud case
Student lets in Leeds
Landlords still lacking awareness of tenancy deposit protection, say TDS
"Remote properties have been problematic" says landlord Angela Bryant
Shawbrook Bank M.D. Stephen Johnson gives an overview of the property market as we approach the General Election
Exclusive new BTL mortgages from Property Tribes Mortgages
Time and cash rich - please advise
Mortgages for LHA tenants
"There's bad practice and then there's outright fraud" warns Property Investor News Editor, Richard Bowser
Landlord interview: "More women should come forward in property" says HMO Landlord Wendy Whittaker-Large
HMO = Houses Misunderstood Often?
Is being a landlord ethical?
Top 10 best towns and cities in the U.K. where you can purchase property under £50K
NEW AND IMPROVED FREE tax spreadsheet for landlords from Rental Income Tax Advisors.
Keep control of Council Tax in your rental properties
BTL Financing Guide - our latest video guide explains how to get your BTL financing ducks in a row and how a mortgage broker is a vital part of your team!
Directory of Councils going ahead with landlord licencing - Hastings has announced their intention for this.
Property Snakes and Ladders - 15 top tips to BTL success.
Property Tribes "Book of the Month" for April - "Property Investor Toolkit" by Richard Brown
Concerns about Ben Rogers
Spotlight on cash flow and yield - top resources to help to measure and manage.
FREE property cash flow spreadsheet:
Our tax partner, Rental Income Tax Advisors, have a free spreadsheet for landlords to help them manage their cash flow.
To receive your free copy, just email >>>> clients@rita4rent.co.uk with "Property Tribes spreadsheet" in the subject line!
Newbie resources:
Top 10 Property Tribes resources for newbie landlords and property investors
The same questions often re-appear on Property Tribes, so we've started creating content that deals with landlord FAQ's.These are the issues and compliance ALL landlords must be familiar with.
Landlord Basics
BTL Financing Guide - our latest video guide explains how to get your BTL financing ducks in a row and how a mortgage broker is a vital part of your team!
Your community news:
We wanted to make you aware of Property Tribes RepoList, the U.K.'s largest real-time database of repossessed and refurbishment properties.
It is widely believed that refurbishment projects and repossessed properties offer purchasers and investors the highest statistical likelihood of finding a bargain or below market value purchase.
In the time it takes you to read this sentence, Property Tribes RepoList can analyse over 750,000 properties currently for sale nationally.
It identifies a number of repossessions and refurbishment projects and catalogues them into a real-time and searchable database, focusing on the postcode of your choice.
Subscribe to RepoList NOW!
Just £19.99 per month!
Special offer: Create your account and use the discount promotional code "propertyt" to get 50% off your subscription for life!
Spotlight on a Tribe:
Our Property-a-holics Tribe (General Discussions) is powered by the lovely people at Northwood Lettings.
Northwood have over 80 branches across the U.K. and have been providing their market-leading Guaranteed Rent service for over 18 years.
Northwood have just launched a new free guide and checklist for landlords: How to choose a professional lettings agent. Download it >>> here.
Find your nearest Northwood branch >>> here.
Spotlight on a Sponsor:
It's thanks to our sponsors that Property Tribes remains a free to use community resource.
We are always grateful if PT members could consider using the services of one of our sponsors.
The HMO Tribe is powered by Platinum Property Partners, a proven system for building an HMO portfolio with support and guidance, and access to a network of HMO professionals.
Thank you for your time reading our newsletter and we look forward to welcoming you to Property Tribes very soon. Always something new! Always something you!It's thanks to our sponsors that Property Tribes remains a free to use community resource.
We are always grateful if PT members could consider using the services of one of our sponsors.
The HMO Tribe is powered by Platinum Property Partners, a proven system for building an HMO portfolio with support and guidance, and access to a network of HMO professionals.
Monday, 27 April 2015
MLM Secrets - 10 Steps to Success in Network Marketing
When doing some keyword research I found out that a lot of people are searching for the keyword "MLM Secrets". So I guess the question I have is this ... Are there really such things as secrets in MLM? Is there any magic sauce that will guarantee your success in MLM / Network Marketing?
MLM Secret # 1 - Fall in Love with your product, company and culture. Find a product that you can be passionate about. While it IS possible to have success even if you're not in love with the product , a passion for the product will just make your job a lot easier. Be a product of the product
MLM Secret # 2 -- Don't be a secret agent. You can have the best product in the world but if you don't tell anybody about it you not to make any money. So be an evangelist for your company and products. Shout ti from the rooftops. And most importantly be a "Product of the Product". If you don't use you own product why should anybody else?
MLM Secret # 3 -- Be consistent. It is much better to work an hour or two a day on your MLM business than do nothing all week and try to make it up all on the weekend. It's like a snowball rolling downhill. If you are constantly stopping and starting your business your momentum will slow.
MLM Secret # 4 -- Focus. With the advent of the Internet it is very easy to get distracted. If you are on Facebook or any other social media site you probably get hit up with a dozen opportunities per day. Remember this, you can't do them all. So pick one, put your blinders on, and get to work.
MLM Secret #5 -- Brand yourself, not your company. People join people, not companies. When I first got involved with MLM I used to promote it on America Online (AOL). I would always pick an AOL screen name that had the name of the MLM company that I was involved with in it. After going through several MLM companies in my first few years and having to change the screen names I finally realized I should just brand myself and so I took the AOL screen name "Jack Bastide".
MLM Secret # 6 -- Work on yourself more than you work on your business. There's an old saying leaders are readers. Instead of watching mindless TV why not pick up a personal development book or listen to an audio? Fill your mind with success principles stuff and you will have success.
MLM Secret # 7 -- If you can't change your friends ... change your friends. Many friends may tell you that MLM doesn't work. It's a scam. These are the same people were living paycheck to paycheck and going to a job that they absolutely hate. So why would you take financial advice from somebody that's not having the financial results that you want? They say that your income will be the average of your five closest friends. Start hanging out with like-minded people
MLM Secret # 8 -- Be a perpetual student. When you think you know it all you're about to have a fall.You should always be sharpening your ax. Be a student of marketing.
MLM Secret # 9 -- Your product is not your product. Your product is people. Always be building your network and never prejudge anybody. Did you ever wonder why certain people can join an MLM company and rocket to the topic compensation plan in The blink of an eye? It's because of their relationships. The larger your network, the larger your net worth.
MLM Secret # 10 - Never give up! If is often said that most people quit right before they are about to have success. One of my friends joined 11 Network Marketing companies in 10 years and never sponsored a single person.
In his 12th company he became a millionaire
I hope you enjoyed these 10 MLM Secrets. Please comment below with any of your own secrets...
MLM Secret # 1 - Fall in Love with your product, company and culture. Find a product that you can be passionate about. While it IS possible to have success even if you're not in love with the product , a passion for the product will just make your job a lot easier. Be a product of the product
MLM Secret # 2 -- Don't be a secret agent. You can have the best product in the world but if you don't tell anybody about it you not to make any money. So be an evangelist for your company and products. Shout ti from the rooftops. And most importantly be a "Product of the Product". If you don't use you own product why should anybody else?
MLM Secret # 3 -- Be consistent. It is much better to work an hour or two a day on your MLM business than do nothing all week and try to make it up all on the weekend. It's like a snowball rolling downhill. If you are constantly stopping and starting your business your momentum will slow.
MLM Secret # 4 -- Focus. With the advent of the Internet it is very easy to get distracted. If you are on Facebook or any other social media site you probably get hit up with a dozen opportunities per day. Remember this, you can't do them all. So pick one, put your blinders on, and get to work.
MLM Secret #5 -- Brand yourself, not your company. People join people, not companies. When I first got involved with MLM I used to promote it on America Online (AOL). I would always pick an AOL screen name that had the name of the MLM company that I was involved with in it. After going through several MLM companies in my first few years and having to change the screen names I finally realized I should just brand myself and so I took the AOL screen name "Jack Bastide".
MLM Secret # 6 -- Work on yourself more than you work on your business. There's an old saying leaders are readers. Instead of watching mindless TV why not pick up a personal development book or listen to an audio? Fill your mind with success principles stuff and you will have success.
MLM Secret # 7 -- If you can't change your friends ... change your friends. Many friends may tell you that MLM doesn't work. It's a scam. These are the same people were living paycheck to paycheck and going to a job that they absolutely hate. So why would you take financial advice from somebody that's not having the financial results that you want? They say that your income will be the average of your five closest friends. Start hanging out with like-minded people
MLM Secret # 8 -- Be a perpetual student. When you think you know it all you're about to have a fall.You should always be sharpening your ax. Be a student of marketing.
MLM Secret # 9 -- Your product is not your product. Your product is people. Always be building your network and never prejudge anybody. Did you ever wonder why certain people can join an MLM company and rocket to the topic compensation plan in The blink of an eye? It's because of their relationships. The larger your network, the larger your net worth.
MLM Secret # 10 - Never give up! If is often said that most people quit right before they are about to have success. One of my friends joined 11 Network Marketing companies in 10 years and never sponsored a single person.
In his 12th company he became a millionaire
I hope you enjoyed these 10 MLM Secrets. Please comment below with any of your own secrets...
Sunday, 26 April 2015
How to find UK property deals in YOUR own area...
50% off! Use the voucher code "network1"
Finding you are getting frustrated in trying to unearth deals?
Hardly surprising when property auctions are PACKED and amateur investors and competing for the low hanging fruit.
So what’s the alternative?
Repolist scours the property platforms to find:
Repossessed properties
Probate property sales
Wrecks in need of refurbishment
Development Opportunities
Simply input the postcode area you are searching for and let Repolist save you trawling thousands of properties online and wearing out the shoe leather talking to agents.
ONLY see the types of properties YOU are interested in.
Check out this deal below we found in under 2 minutes – this type of deal is the kind of opportunity that could make you your annual salary in just 6 weeks?
The potential profit in this property could be a massive £30,000.
Opportunities just like this one are available instantly from the Repolist website. Repolist is the leading source of repossessed and discounted property across the UK. Thousands of investors hear about bargain property in their area FIRST through Repolist so why not join them today?
Take a look at the opportunity below:
Surrey - 2 Bed 2 Bath maisonette
Large private garden,
In need of some modernisation.
Asking £175k estimated works £12,500 value after work £220k.
Thousands of opportunities are available, live, across UK but they don't hang around for long!
Join Repolist today to make sure you hear about the best deals in your area first.
Use voucher code "network1" to get a massive 50% reduction. Normal price £19.99 reduced to just £10 and with no contract!
All of the details are available from Your Property Network in partnership with repolist.co.uk
For just £10 a month you can get notified about repossessed property deals in your local area and across the UK.
Are we saying you should buy this property?
No!
A whole lot more due diligence and research would be required to find out if this is a deal that could work for you.
But it is without a doubt an opportunity worth some further investigation.
Text me ADRIAN HIBBERT on +44 7966 871854 if you want to Attend a Property Workshop in the UK for One Full Day 10am - 6pm for just £50 and learn a number of Creative Strategies on How You Can Own Property for FREE and even STOP any Repossession in your local area...
Wednesday, 22 April 2015
Pension Scheme Conversion of Commercial Property to Residential...
Pension Scheme Conversion of Commercial Property to Residential
We are regularly asked whether it is possible for a SSAS to acquire a commercial property (or land)
and convert it into residential property, thereby benefitting from a substantial tax free gain on the
sale of the property. With the high current demand for residential property, high supply of low cost
unused commercial property and easier planning rules, this would be a popular strategy for pension
scheme investment. The answer is “maybe” and this mailing aims to explain the issues, complexity
and possibilities available.
The Rules
The basic rule is that a UK pension scheme can purchase commercial property or land and can obtain
planning permission to convert or develop that property to lease or sell. There is a proviso that if the
pension scheme is deemed as “trading” then the profits will be taxed as a trading receipt (i.e.
corporation tax is payable). This is established by applying the HM Revenue & Customs Badges of
Trade to the activity: http://www.hmrc.gov.uk/manuals/bimmanual/BIM20205.htm. We feel that by
only carrying-out a development once or infrequently, any challenge of trading can be avoided.
The other essential rule is that the pension scheme must not at any time hold residential property or
it will be subject to extremely penal tax charges. The HM Revenue & Customs definition of the point
at which a property conversion becomes residential is contained in the following link:
http://www.hmrc.gov.uk/MANUALS/RPSMMANUAL/rpsm07109090.htm.
On speaking to architects, we understand that in the case of property conversion, the certificate of
habitation referred to by HM Revenue & Customs is actually a Completion Certificate that the
architect will issue.
It is therefore essential that with a commercial to residential conversion, the property is removed
from the pension scheme BEFORE the architect’s Completion Certificate is issued.
The Problem
This rule causes a problem for the pension scheme because it is very difficult to sell an uncompleted
property. In most cases the purchaser’s solicitor will request a copy of the Completion Certificate
and will advise their client not to proceed if this is not forthcoming. In addition, it is practically
impossible for a purchaser to obtain a mortgage without a Completion Certificate.
The Solution
We know of three methods that can be used to remove the uncompleted property from the pension
scheme although none are ideal and have their complications.
1. Find a Cash Buyer
The purchaser can be a connected or unconnected party. If connected, an open market valuation is
necessary. Provided the purchaser is aware that the conversion is not complete and there is some
further work to carry out to obtain the architect’s certificate, there is no reason for the sale not to
proceed. The purchaser can then sell-on the property and potentially make a small gain for the
completion work they carried out. Alternatively they can occupy or lease the property.
2. In-specie Loan to Unconnected Borrower
The SSAS is permitted to make loans to genuinely unconnected parties of up to 100% of its value and
can negotiate the terms with the borrower provided they are deemed to be prudent, secure and
commercial. A part-completed property could therefore be lent in-specie (i.e. the property
ownership is transferred to the borrower by way of a loan) to an unconnected party.
Example:
Jeanette has used her SSAS to part complete a conversion of a shop with offices above into a house.
She bought the shop for £75,000 and spent £50,000 on the conversion. The property is now valued
at £175,000.
She agrees with a local property developer to lend the property to them for £175,000 at 10% p.a. by
transferring the ownership of the property to the developer and taking a legal charge over the
property as security (there are some specific requirements to meet where residential property is
used as security for a loan from a SSAS). The developer completes the conversion over a three
month period and sells the house six months later for £220,000.
From their sale proceeds they repay Jeanette’s SSAS £188,125 (£175,000 capital and £13,125 loan
interest for nine months).
The gain by Jeanette’s SSAS and tax saved is:
Growth in property value during conversion £50,000
Loan interest received £13,125
Tax saved (£14,000 CGT assuming higher rate / £2,625 income tax assuming 20%) £16,625
3. In-specie Loan to Sponsoring Company
This is more complex and requires larger funds but is based on the underlying principle that a SSAS
can lend up to 50% of its net value to a sponsoring company. The conditions are:
The loan must be secured by a first legal charge on an asset with a value that at least covers
the loan capital and interest payments over its term
The maximum term is five years
Standard HMRC interest rate is 1% over bank base (currently 0.5%)
Loan capital and interest must be repaid at least annually in equal instalments over the term
of the loan.
This method can be explained by using an example:
Steve and Dave run a minicab and chauffeur business. They have combined personal pensions worth
£250,000. They establish a SSAS and transfer-in the personal pensions. They then buy a disused pub
in Bolton for £50,000 and decide to convert it into two residential flats which they believe will fetch
£140,000 each. The cost of the redevelopment is £60,000.
The SSAS commences the conversion and spends £50,000 to take the project near to its completion.
At this point the property is valued on the open market by a qualified valuer at £150,000 which is
50% of the total SSAS value which at that point is £300,000.
Steve and Dave establish a separate property development company that is funded by some cash
(assumed at £15,525 - see below) and which joins the SSAS as a participating company and pays a
small pension contribution to formalise its participation.
The SSAS then makes a one year in-specie loan of £146,675 to the new company by transferring the
property to the company for the value given in the valuation and the company pays £3,325 to the
pension scheme as a part purchase of the property (this is to ensure the value of the security of
£150,000 covers the loan capital and interest payments over its term). The SSAS takes a first legal
charge over the property as security for its loan.
Steve and Dave’s property company complete the conversion which costs another £10,000 and
obtain the completion certificate from the architect. They then sell the flats for £280,000 within one
year of the pension scheme loan being made.
The SSAS loan and interest accrued for one year are then repaid to the SSAS from the sale proceeds.
By making some assumptions of the costs, the estimated return and tax payable/saved is as follows:
Gain by the SSAS
Growth in property value during conversion £50,000
Loan interest payable by property company (assume repaid after one year) £2,200
Tax saved (£14,000 CGT assuming higher rate / £440 income tax assuming 20%) £14,440
Gain by the Company
Property sale proceeds (after costs assumed at £5,000) £275,000
Less costs of development/loan
Pension contribution £200
Part purchase of property from SSAS £3,325
Stamp Duty Nil
Solicitor’s fees for conveyancing and legal charge £1,500
Valuer’s fee £500
Completion of residential conversion £10,000
SSAS loan capital repayment £147,675
SSAS loan interest repayment £2,200
Total £165,400
Net proceeds £109,600
Tax payable (assume initial funding of £15,525 was a director’s loan and a
Corporation Tax rate of 20%) £18,815
Total gain (£14,440 tax saved by the SSAS and £90,785 net gain to the company) £105,225
Incidentally, the property company could pay an £80,000 pension contribution to the SSAS (£40,000
each) from the proceeds which would save a further £16,000 Corporation Tax.
Naturally, where a SSAS is carrying out a commercial to residential conversion we have to monitor
the development to ensure it is not completed within the pension fund. We therefore ask for dated
photographic evidence on a monthly basis during the process and a copy of the completion
certificate.
A major complicating factor is VAT which is often payable on the purchase of a commercial property
and on the costs of conversion. This would add an additional 20% to the costs which could make the
project unviable. We are not VAT experts but our understanding of the VAT position is as follows:
Firstly, at the point of purchasing the commercial property, if this is already subject to VAT, it is
possible to submit a form 1614D to the VAT office to avoid paying VAT on the purchase price
(because it is being purchased with the intention of a conversion to residential).
Secondly, as long as the pension scheme intends to make a zero rated taxable supply (by selling the
converted property either as a freehold interest or a lease over 21 years) of the partly completed
residential conversion it will be able to register for VAT and recover VAT incurred on the conversion
costs. It should be added that some conversion costs are blocked from VAT recovery (anything that
is not building materials such as carpets, curtains, fitted wardrobes and white goods). A pension
scheme is not permitted to purchase these anyway without incurring heavy tax penalties.
Thirdly, provided the sale of the partly converted property meets the following conditions, there is
no VAT on the sale price as this is zero rated:
A real and meaningful start to the conversion has been made
there must be a sale of the property or grant of a long lease
it must be a conversion of a non-residential property
it must not be converted into a holiday home
it must be the first grant of a major interest
it may be necessary to obtain a certificate (relevant residential/charitable use).
The final stage is that whoever buys the part completed property also needs to carry out some
meaningful work to the property if they want to sell it on with no VAT.
Unfortunately, the in-specie loan scenarios given above do not achieve the condition of a sale or
grant of a long lease. This means the SSAS would not be allowed to recover VAT on the conversion
costs although provided the borrower carried out some meaningful work to the property they could
sell it with no VAT.
Please note that we are not VAT experts so please do not consider this article to be VAT advice.
We hope this is of interest and explains the issues involved with this commonly asked question. For
more information or if you would like to discuss this further please contact us:
We are regularly asked whether it is possible for a SSAS to acquire a commercial property (or land)
and convert it into residential property, thereby benefitting from a substantial tax free gain on the
sale of the property. With the high current demand for residential property, high supply of low cost
unused commercial property and easier planning rules, this would be a popular strategy for pension
scheme investment. The answer is “maybe” and this mailing aims to explain the issues, complexity
and possibilities available.
The Rules
The basic rule is that a UK pension scheme can purchase commercial property or land and can obtain
planning permission to convert or develop that property to lease or sell. There is a proviso that if the
pension scheme is deemed as “trading” then the profits will be taxed as a trading receipt (i.e.
corporation tax is payable). This is established by applying the HM Revenue & Customs Badges of
Trade to the activity: http://www.hmrc.gov.uk/manuals/bimmanual/BIM20205.htm. We feel that by
only carrying-out a development once or infrequently, any challenge of trading can be avoided.
The other essential rule is that the pension scheme must not at any time hold residential property or
it will be subject to extremely penal tax charges. The HM Revenue & Customs definition of the point
at which a property conversion becomes residential is contained in the following link:
http://www.hmrc.gov.uk/MANUALS/RPSMMANUAL/rpsm07109090.htm.
On speaking to architects, we understand that in the case of property conversion, the certificate of
habitation referred to by HM Revenue & Customs is actually a Completion Certificate that the
architect will issue.
It is therefore essential that with a commercial to residential conversion, the property is removed
from the pension scheme BEFORE the architect’s Completion Certificate is issued.
The Problem
This rule causes a problem for the pension scheme because it is very difficult to sell an uncompleted
property. In most cases the purchaser’s solicitor will request a copy of the Completion Certificate
and will advise their client not to proceed if this is not forthcoming. In addition, it is practically
impossible for a purchaser to obtain a mortgage without a Completion Certificate.
The Solution
We know of three methods that can be used to remove the uncompleted property from the pension
scheme although none are ideal and have their complications.
1. Find a Cash Buyer
The purchaser can be a connected or unconnected party. If connected, an open market valuation is
necessary. Provided the purchaser is aware that the conversion is not complete and there is some
further work to carry out to obtain the architect’s certificate, there is no reason for the sale not to
proceed. The purchaser can then sell-on the property and potentially make a small gain for the
completion work they carried out. Alternatively they can occupy or lease the property.
2. In-specie Loan to Unconnected Borrower
The SSAS is permitted to make loans to genuinely unconnected parties of up to 100% of its value and
can negotiate the terms with the borrower provided they are deemed to be prudent, secure and
commercial. A part-completed property could therefore be lent in-specie (i.e. the property
ownership is transferred to the borrower by way of a loan) to an unconnected party.
Example:
Jeanette has used her SSAS to part complete a conversion of a shop with offices above into a house.
She bought the shop for £75,000 and spent £50,000 on the conversion. The property is now valued
at £175,000.
She agrees with a local property developer to lend the property to them for £175,000 at 10% p.a. by
transferring the ownership of the property to the developer and taking a legal charge over the
property as security (there are some specific requirements to meet where residential property is
used as security for a loan from a SSAS). The developer completes the conversion over a three
month period and sells the house six months later for £220,000.
From their sale proceeds they repay Jeanette’s SSAS £188,125 (£175,000 capital and £13,125 loan
interest for nine months).
The gain by Jeanette’s SSAS and tax saved is:
Growth in property value during conversion £50,000
Loan interest received £13,125
Tax saved (£14,000 CGT assuming higher rate / £2,625 income tax assuming 20%) £16,625
3. In-specie Loan to Sponsoring Company
This is more complex and requires larger funds but is based on the underlying principle that a SSAS
can lend up to 50% of its net value to a sponsoring company. The conditions are:
The loan must be secured by a first legal charge on an asset with a value that at least covers
the loan capital and interest payments over its term
The maximum term is five years
Standard HMRC interest rate is 1% over bank base (currently 0.5%)
Loan capital and interest must be repaid at least annually in equal instalments over the term
of the loan.
This method can be explained by using an example:
Steve and Dave run a minicab and chauffeur business. They have combined personal pensions worth
£250,000. They establish a SSAS and transfer-in the personal pensions. They then buy a disused pub
in Bolton for £50,000 and decide to convert it into two residential flats which they believe will fetch
£140,000 each. The cost of the redevelopment is £60,000.
The SSAS commences the conversion and spends £50,000 to take the project near to its completion.
At this point the property is valued on the open market by a qualified valuer at £150,000 which is
50% of the total SSAS value which at that point is £300,000.
Steve and Dave establish a separate property development company that is funded by some cash
(assumed at £15,525 - see below) and which joins the SSAS as a participating company and pays a
small pension contribution to formalise its participation.
The SSAS then makes a one year in-specie loan of £146,675 to the new company by transferring the
property to the company for the value given in the valuation and the company pays £3,325 to the
pension scheme as a part purchase of the property (this is to ensure the value of the security of
£150,000 covers the loan capital and interest payments over its term). The SSAS takes a first legal
charge over the property as security for its loan.
Steve and Dave’s property company complete the conversion which costs another £10,000 and
obtain the completion certificate from the architect. They then sell the flats for £280,000 within one
year of the pension scheme loan being made.
The SSAS loan and interest accrued for one year are then repaid to the SSAS from the sale proceeds.
By making some assumptions of the costs, the estimated return and tax payable/saved is as follows:
Gain by the SSAS
Growth in property value during conversion £50,000
Loan interest payable by property company (assume repaid after one year) £2,200
Tax saved (£14,000 CGT assuming higher rate / £440 income tax assuming 20%) £14,440
Gain by the Company
Property sale proceeds (after costs assumed at £5,000) £275,000
Less costs of development/loan
Pension contribution £200
Part purchase of property from SSAS £3,325
Stamp Duty Nil
Solicitor’s fees for conveyancing and legal charge £1,500
Valuer’s fee £500
Completion of residential conversion £10,000
SSAS loan capital repayment £147,675
SSAS loan interest repayment £2,200
Total £165,400
Net proceeds £109,600
Tax payable (assume initial funding of £15,525 was a director’s loan and a
Corporation Tax rate of 20%) £18,815
Total gain (£14,440 tax saved by the SSAS and £90,785 net gain to the company) £105,225
Incidentally, the property company could pay an £80,000 pension contribution to the SSAS (£40,000
each) from the proceeds which would save a further £16,000 Corporation Tax.
Naturally, where a SSAS is carrying out a commercial to residential conversion we have to monitor
the development to ensure it is not completed within the pension fund. We therefore ask for dated
photographic evidence on a monthly basis during the process and a copy of the completion
certificate.
A major complicating factor is VAT which is often payable on the purchase of a commercial property
and on the costs of conversion. This would add an additional 20% to the costs which could make the
project unviable. We are not VAT experts but our understanding of the VAT position is as follows:
Firstly, at the point of purchasing the commercial property, if this is already subject to VAT, it is
possible to submit a form 1614D to the VAT office to avoid paying VAT on the purchase price
(because it is being purchased with the intention of a conversion to residential).
Secondly, as long as the pension scheme intends to make a zero rated taxable supply (by selling the
converted property either as a freehold interest or a lease over 21 years) of the partly completed
residential conversion it will be able to register for VAT and recover VAT incurred on the conversion
costs. It should be added that some conversion costs are blocked from VAT recovery (anything that
is not building materials such as carpets, curtains, fitted wardrobes and white goods). A pension
scheme is not permitted to purchase these anyway without incurring heavy tax penalties.
Thirdly, provided the sale of the partly converted property meets the following conditions, there is
no VAT on the sale price as this is zero rated:
A real and meaningful start to the conversion has been made
there must be a sale of the property or grant of a long lease
it must be a conversion of a non-residential property
it must not be converted into a holiday home
it must be the first grant of a major interest
it may be necessary to obtain a certificate (relevant residential/charitable use).
The final stage is that whoever buys the part completed property also needs to carry out some
meaningful work to the property if they want to sell it on with no VAT.
Unfortunately, the in-specie loan scenarios given above do not achieve the condition of a sale or
grant of a long lease. This means the SSAS would not be allowed to recover VAT on the conversion
costs although provided the borrower carried out some meaningful work to the property they could
sell it with no VAT.
Please note that we are not VAT experts so please do not consider this article to be VAT advice.
We hope this is of interest and explains the issues involved with this commonly asked question. For
more information or if you would like to discuss this further please contact us:
Wednesday, 15 April 2015
PPN Swansea - Progressive Property Network
PPN Swansea Returns on the 21st April.
Your hosts Kevin Poneskis and Caroline Benson
will be hosting an evening of networking.
So if you want to be a part of this, here's what
you need to know!
Location:
Mercure Swansea
Phoenix Way
Swansea
SA7 9EG
Date & Time: 21st April at 6:30pm!
Your Host:
Kevin Poneskis and Caroline Benson
Your Guest Speaker:
Gill Alton 
Gill is not a your classically trained IFA, but having
experienced financial hardship first hand she has a passion for
understanding the Pension world and for sharing how the changes
we have seen in recent years will mean many are heading blindly
towards a retirement of poverty, unless they act differently.
experienced financial hardship first hand she has a passion for
understanding the Pension world and for sharing how the changes
we have seen in recent years will mean many are heading blindly
towards a retirement of poverty, unless they act differently.
In line with her passion and desire to educate others about
building wealth through property investment Gill published her
book ‘Your Pension Shortfall, Your Retirement Rescue Plan’ in
2013 and has received outstanding reviews on Amazon.
building wealth through property investment Gill published her
book ‘Your Pension Shortfall, Your Retirement Rescue Plan’ in
2013 and has received outstanding reviews on Amazon.
In September 2014 she joined forces with Kevin Whelan Founder of
Kingswood Law IFA and Wealth Builders to expand her
understanding and help share how you can combine pensions and
joint ventures to create your own Pension Bank.
Kingswood Law IFA and Wealth Builders to expand her
understanding and help share how you can combine pensions and
joint ventures to create your own Pension Bank.
Finding all the money you could ever need for all the property
you would ever want.
you would ever want.
Book your ticket here:
Investing together for freedom, choice, and profit
Kevin Poneskis and Caroline Benson, Jamie Madill, Rob Moore, & Mark Homer
Progressive Property Network
Part of the Progressive Group
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